Lenzing Expands Production In Austria, Indonesia

Austria-based viscose fiber producer Lenzing AG plans to invest 151 million euros to expand
capacity at its two largest production facilities, located in Austria and Indonesia.

The company will invest 45 million euros to add 15,000 tons of capacity at its largest
manufacturing facility in Lenzing, Austria, bringing the total capacity at that location to 250,000
tons. At its Purwakarta, Indonesia-based PT South Pacific Viscose facility, Lenzing will invest 106
million euros to add a fourth production line to increase capacity from 155,000 tons to 220,000
tons, as well as to improve infrastructure and optimize production.

“The demand for Lenzing fibers, particularly in Asia, has recently been very positive,” said
Thomas Fahnemann, chairman of Lenzing’s Management Board. “In the medium term, we view the
continuing economic growth of the region, the rise in prosperity and its growing population as
indicators of very good market opportunities.”

Lenzing has announced it will invest 45 million euros to expand capacity at it
Austria-based manufacturing facility.

Fahnemann said Asia is the company’s primary growth market, noting potential for additional
capacity expansion in that region, especially in China, where it opened a production facility last
year. Lenzing also plans to build a fiber-production plant in India.

Lenzing produces 560,000 tons of viscose fiber annually at six fiber production facilities

With the announced expansions, along with a previously announced expansion at its Tencel®
facility in Heiligenkreuz, Austria, the company’s annual production capacity will total 660,000

March/April 2008